CAGR details
Investment A
Investment B
Optional extras
Results
Growth over years
Year-wise growth
What is CAGR?
Compound Annual Growth Rate (CAGR) is the steady yearly rate that takes a starting value to an ending value over a set period, assuming gains are reinvested. It is the standard way to compare mutual funds, stocks, gold or any lumpsum held from date A to date B. This free CAGR calculator also solves for future value, present value and years, and shows real CAGR after inflation.
CAGR formula
CAGR = (FV ÷ PV)1/n − 1, where PV is the present (initial) value, FV the future (final) value and n the number of years. Related solvers: FV = PV × (1 + r)n, PV = FV ÷ (1 + r)n, n = ln(FV ÷ PV) ÷ ln(1 + r).
Worked example (₹1L → ₹10L in 5 years)
PV = ₹1,00,000, FV = ₹10,00,000, n = 5. CAGR = (10)1/5 − 1 ≈ 58.49%. Absolute return is 900%, but that ignores how long the money was invested. Some sites round this example to 58.9%; the precise figure from the formula is 58.49%.
| Input | Value |
|---|---|
| Present value (PV) | ₹1,00,000 |
| Future value (FV) | ₹10,00,000 |
| Years (n) | 5 |
| CAGR | 58.49% |
| Absolute return | 900% |
| Total gain | ₹9,00,000 |
CAGR vs absolute return
Absolute return = (FV − PV) ÷ PV. It is useful for short holds but misleading across different durations. CAGR annualises the same path so a 3-year and a 7-year investment can be compared fairly. For SIPs and irregular cash flows, use XIRR instead of CAGR.
Inflation and real CAGR
Nominal CAGR ignores rising prices. Real CAGR ≈ (1 + CAGR) ÷ (1 + inflation) − 1. At 58.49% nominal and 6% inflation, real CAGR ≈ 49.52%. Inflation-adjusted FV = nominal FV ÷ (1 + inflation)n.
When to use this calculator
- Point-to-point mutual fund or stock returns from a lumpsum purchase
- Checking what annualised rate turned one corpus into another
- Finding how long a target takes at an assumed CAGR
- Comparing two investments held for different periods
For monthly SIP projections use the SIP Calculator. For one-time mutual fund planning with goal mode see the Lumpsum Calculator. For deposits with monthly/daily compounding open the Compound Interest Calculator. Planning withdrawals? Try the SWP Calculator.
Frequently asked questions
What is the CAGR formula?
CAGR = (FV ÷ PV)1/n − 1. Example: ₹1,00,000 → ₹10,00,000 in 5 years ≈ 58.49%.
CAGR vs absolute return — what is the difference?
Absolute return ignores time; CAGR annualises the gain so different holding periods are comparable.
How is CAGR used for mutual funds?
It is the point-to-point annualised return from start NAV to end NAV for a lumpsum. SIP returns need XIRR. Use the SIP Calculator for SIP estimates.
What is real CAGR after inflation?
Real CAGR ≈ (1 + nominal) ÷ (1 + inflation) − 1. It estimates growth in buying power.
Can I enter duration in months?
Yes — choose Months in Find CAGR (also available in FV/PV modes). Months are converted as months ÷ 12.
Is this investment advice?
No. Estimates only. Past CAGR does not guarantee future returns. Consult a qualified advisor.